Let Freeport´s Contract End in 2021: PUSHEP

Tuesday, 03 OCtober 2017 , 12:00:00 WIB -

The Minister of Energy and Mineral Resources, Ignasius Johan is seen presenting his ministry�s achievements in in the year ended September 2017. (ANTARA)

JAKARTA, GRES.NEWS – Center for Energy and Mining Law Studies (PUSHEP) Bisman Bhaktiar said PT Freeport Indonesia’s contract ends in 2021 and thus the divestment scheme would be inappropriate.

He explained that the government should wait until 2021 and take offer the US-based company’s mine. Thus, the government would own 100 percent of the mine instead of just 51 percent.

"The divestment scheme will trap Indonesia to keep on giving Freeport contract extensions. Yet, if the government decides to not extend the company’s contract, Indonesia will have a far higher bargaining position," Bisman said, in a press release sent to gres.news, Monday (2/10).

Bisman suggests the government to stop negotiating with Freeport and stop allowing themselves to be force to follow the latter’s interests. The government must focus on upholding the Law on Mineral and Coal. "It is time to be firm to Freeport. The company must learen to comply with existing laws in Indonesia," he said.

The Ministry of Finance recently received a letter from the chief executive officer (CEO) of Freeport McMoRan Inc., Richard Adkerson, that rejects the divestment scheme for Freeport. The relations between the government and Freeport has heated up again. Yet, last month, they claim to have reached an agreement," Bisman further stated.

Bisman questions Freeport’s move as it violates the agreement in August 2017, which states the company has agreed to the 51 percent divestment scheme. "The letter means that the announcement from the government was inaccurate," he said.

Bisman warns that the government must stop playing nice with Freeport in the negotiations. (mag)